Published: 2025-01-10T14:40:33.000Z
Chart EUR/JPY Update: Drifting lower
Senior Technical Strategist
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Consolidation is giving way to a further drift lower
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 166.00 | * | congestion | S1 | 162.00 | * | congestion | |
| R3 | 165.00 | * | congestion | S2 | 161.55 | * | 38.2% ret of Dec rally | |
| R2 | 164.00 | * | congestion | S3 | 161.00 | * | congestion | |
| R1 | 163.00 | * | congestion | S4 | 160.50 | ** | 50% ret of Dec rally |
Asterisk denotes strength of level
14:20 GMT - Consolidation is giving way to a further drift lower, as intraday studies turn down once again, with prices within reach of congestion support at 162.00. Daily readings continue to track lower and positive weekly charts have turned neutral, suggesting room for further losses in the coming sessions. However, a close below the 161.55 Fibonacci retracement is needed to turn sentiment outright negative and prompt a deeper pullback towards the 160.50 retracement. Meanwhile, resistance remains at congestion around 163.00. A close above here would turn sentiment neutral and prompt consolidation beneath further congestion around 164.00.